Oil India shortlists five heavy oil consultants

Oil India has shortlisted five consultants for advice on how to exploit heavy oil at the 1530.5-sq km Baghewala field in Rajasthan's Jaisalmer district.

After receiving 14 EoIs last December, Oil India on April 29 shortlisted Canada-based Fire Creek Resources, US-based Frontier Resources, UK-based EnQuest, Ozana Consulting and a consortium led by Terra Drilling. Oil India will float a tender in June and invite these five companies to submit technical and price bids.

Companies will then have 15 days to respond. “We want to appoint a consultant by September,” confirms an Oil India source in Rajasthan.

Oil India wants the consultant to provide technology to exploit heavy oil and to also oversee project implementation. Any consultant will need to carry out G&G studies to identify drilling locations for four planned exploratory wells.

“We want to drill at least four wells at Baghewala to see if the reservoir is commercially viable,” adds Oil India. “If it is commercially viable then we will go ahead with the consultant’s suggestions.

If the consultant asks us to drill more exploratory wells we will do that or we may develop the field.” Oil India wants to spud the first well in January 2015 and will invite EoIs to hire a rig by mid-2014.

No rig specs are yet finalised. “We will hire the rig as suggested by the consultant,” we learn.

Oil India wants to complete the exploration programme at Baghewala by end-2015. Heavy oil at Baghewala varies from 14 to 17 degrees API.

Oil India drilled its seventh well at Baghewala last September to 1229 metres TD, using a company-owned 1000-hp rig. Baghewala is believed to hold 34m tonnes of in-place oil at a depth of 500 metres and 14m tonnes of in-place oil at a depth of 1600 metres. Earlier attempts to use steam injection technology to exploit heavy oil proposed by Petroleos de Venezuela (PDVSA) proved unsuccessful. Baghewala was first awarded to Reliance in 1997 but Reliance did not sign a PSC and the field was withdrawn and given to Oil India two years later. On February 10, 2002, Rajasthan authorities granted Oil India the PEL, backdated from 1999.

Oil India drilled its seventh well at Baghewala last September to 1229 metres TD, using a company-owned 1000-hp rig. Baghewala is believed to hold 34m tonnes of in-place oil at a depth of 500 metres and 14m tonnes of in-place oil at a depth of 1600 metres. Earlier attempts to use steam injection technology to exploit heavy oil proposed by Petroleos de Venezuela (PDVSA) proved unsuccessful. Baghewala was first awarded to Reliance in 1997 but Reliance did not sign a PSC and the field was withdrawn and given to Oil India two years later. On February 10, 2002, Rajasthan authorities granted Oil India the PEL, backdated from 1999.